SoftBank Subsidiary Sprint Announces Buyback of Shares

Japanese telecommunications and internet giant has owned the American subsidiary Sprint (NYSE: S) for over a couple of years now. The once popular mobile service in America Sprint was bought out by the Japanese giant for 22 billion dollars in the year 2013. Sprint performed well throughout the previous decade, but after the company was hit hard due to the financial crisis in 2008, it had offered its majority shares to the highest bidder. The American telecommunications company however, has been making a strong comeback over the past couple of years.

Sprint sales rise

Sprint witnessed a rise in subscriptions of connection last year. Sprint underwent massive cost cutting measure a few years ago in order to cope with the times and the financial conditions. However, the rise in sales has bolstered the company’s confidence. Sprint made the announcement of buying back as much as 14 percent of its shares from the Japanese holding company. Financial analysts in the Japanese market commented on the issue stating that Sprint cared about its market and its reputation, they also care about their stock valuation and shares and are moving to buy them back.

The buy-out of the company offered a good monetary respite for the company and decided to move in that direction which has turned out to be favorable for them. Sprint announced a buyback of 4.4 billion dollars worth of shares from SoftBank which has boosted the company’s portfolio and the company’s stock prices as well. The attempt to buyback the company shares however, will be a long drawn process of at least a year since the company is yet to ensure the invested assets are paid off. The assets invested by SoftBank into the company are yet to be assessed and ensured. The decision to carry out the buyback so far seems to be more on market stipulations and company projections.

An uneasy future

Even though the general elated mood of Sprint is what prevails, there is still cautious optimism over the matter as the company has to ensure that it could carry out the thorough assessment of funds invested. The positive performance of Sprint has not only boosted Sprint’s shares but have also allowed a 5.7 percent growth in Softbank’s shares and assets. This may make the buyback of shares and transitions little tight. Many still wonder if SoftBank would let go of this profit making subsidiary that easily.

No portion of FinancialBuzz.com may be duplicated, redistributed or manipulated in any form without our consent, violators will be prosecuted to the full extent of the law. By accessing any information beyond this page, you agree to abide by the Privacy Policy and Terms of Use (Disclaimer).